Question

Patrick and Brooklyn are making decisions about their bank accounts. Patrick wants to deposit $300 as a principle amount, with an interest of 3% compounded quarterly. Brooklyn wants to deposit $300 as the principle amount, with an interest of 5% compounded monthly. Explain which method results in more money after 2 years. explain please

Answer 1

Use the compound interest formula for each scenario.
\[A=P \left( 1+\frac{ r }{ n } \right)^{nt}\]

P = principle amount
r = interest rate
n = # of compoundings yearly
t = # of years

Answer 2

but really, one of these uses a higher interest rate AND is compounded more frequently than the other, two thing that individually return more interest.